|
2. |
a. Labor rate variance = (AH × AR) – (AH × SR) = $11,385 – (1,100 ×
$10.50) = $165 F b. Labor efficiency
variance = SR(AH – SH*) = $10.50 (1,100 –
1,320) = $2,310 F *SH = Standard hours
per unit × Actual output = 3.3 × 400 = 1,320 c. Journal entries to
record the direct labor costs:
|
